US30 For Swing Traders: The Weekly that is in Bearish (directional) Market Bias shows that the last candle formed is a Doji (highlighted with a yellow marker) at the high of the Inside Day pattern.
There are 2 scenarios to consider: 1. If this is a bullish trend rising within a very tall Inside Day pattern for a breakout at the pattern's high (at 40,909), a Doji within an ascent suggests that there's indecision with an exhaustion of the market. After the bullish rally continues, watch for a top reversal pattern.
There are two potential take profit projections: The Pivot High (circled in red at 42,819) to breach. If the bulls can do that, then they're able to go higher towards the S&R Zone above (that starts at 44,294).
2. Or, this is the top of the bullish rally and the upper wicks of the Doji and previous bullish candle have created a Resistance Zone for a reversal to the downside next. A pattern that may be forming: an Evening Doji Star to reject a breakout from the Inside Day pattern's high (at 40,909), but for the bears to do a breakout at the Inside Day pattern's low (at 36,480).
US30 False Breakout! On the Hourly that is in Bearish (directional) Market Bias, we just had a false breakout from the low of the Inside Day pattern. A bullish candle showed up to reverse the breakout and tethered right back into the pattern at its low of 41,192.
If the bullish thrust continues, then the breakout can be towards the Inside Day's high at 41,465. A Bearish Trendline (in red dotted line) is not too far away. If the bulls rise higher and consolidate to the right, they can potentially do a trendline break, flipping the market bias from bearish to bullish for more profitable moves in that direction. We'll see.
US30 Ping Pong, Anyone? I wrote earlier that the Daily is showing an Inside Day that is a market pause before a breakout for true direction.
On the Hourly that is in Bearish (directional) Market Bias, an Inside Day also showed up that formed between two S&R Zones, one above and another below. So, the candle will consolidate within this tall pattern, until a breakout at either the Inside Day's high at 41,465 or low at 41,192.
Watch for a true breakout that continues in that direction. A false breakout will show a candle to reverse back into the Inside Day pattern.
US30 What's Below? A giant M-shaped pattern is forming on the Hourly that is in Bearish (directional) Market Bias. The last leg of the "M" is typically a long bear trend.
Below is a Swing Low at 41,148, S&R Zone, and three more Swing Lows further down (at 40,970, 40,930, and 40,821). We'll see how far the bear trend goes.
If the bears can't breach the Swing Low of 41,148, then back up it goes to potentially play Ping Pong between the two S&R Zones, above and below.
US30 For Swing Traders:
